The trial of Sam Bankman-Fried kicked off in March 2021, and already there have been some big moments. Bankman-Fried is the CEO of cryptocurrency exchange FTX, and is facing off against the U.S. Securities and Exchange Commission (SEC) in a civil case that might set an important precedent for the cryptocurrency industry. Here are the biggest moments from the trial thus far.
The first big moment came when Bankman-Fried’s lawyers asserted that their client isn’t subject to the same regulations as other established financial companies. The SEC is claiming that Bankman-Fried’s company should be registered as an exchange, and parties on both sides are debating whether cryptocurrency trading falls under U.S. securities laws. Bankman-Fried’s lawyers claim that his activities are more akin to trading digital commodities than securities, meaning the SEC’s regulations wouldn’t be applicable.
The second big moment was the introduction of the Blockchain Decentralization Act. This trademarked piece of legislation was written by Bankman-Fried and his legal team in order to loosen up regulations on the cryptocurrency industry. The proposed bill would recognize cryptocurrency as an asset class, which in turn would allow greater innovation in its usage.
The third big moment came when the court agreed to allow unclassified evidence to remain hidden from the public. This ruling was seen as a big win for Bankman-Fried and his team, as some of the evidence was sensitive in nature and could have been potentially damaging if revealed.
It’s clear that the Sam Bankman-Fried trial is one to watch. It will be some time before the ruling is announced, but the trial has already yielded some remarkable moments, and is sure to reveal many more as the proceedings move forward.
